Sentara Health issues contract termination notice to Anthem, urging insurer to protect access to care for nearly 380,000 Virginians

After eight months of stalled negotiations, Sentara calls on Anthem to agree to reasonable rates that reflect the true cost of providing care

Sentara Health, Virginia's leading not-for-profit integrated healthcare system, today provided Anthem Blue Cross Blue Shield of Virginia with formal notice of its intent to allow certain commercial, Medicare and Medicaid agreements to expire if a new agreement cannot be reached.

In the notification letter to Anthem, Sentara reaffirmed its commitment to continue negotiating toward a resolution that keeps nearly 380,000 Anthem members in Virginia in-network. Providing formal notice of termination is a standard contractual step - one that does not preclude either party from reaching a fair agreement.

The notification follows more than eight months of negotiations in which Anthem has been unwilling to agree to rates that support the delivery of high-quality care to Virginians. Under the current agreements, Sentara remains in-network for certain Anthem commercial and Medicare members through at least December 31, 2026, and Medicaid members through January 28, 2027, with additional contracts expiring on a rolling basis into 2027.

For Anthem members, nothing changes today. They can continue seeing their Sentara doctors and care teams, and use Sentara hospitals and facilities, exactly as they do today at their current in-network rates.

Additionally, there are a series of unresolved financial issues in which Anthem has failed to meet its obligations to Sentara. In total, Anthem owes Sentara more than $105 million in charges for unpaid claims that are more than 90 days overdue - money owed for care Sentara has already delivered to Anthem members. In addition, Anthem has refused to pay $12 million following a 2025 billing settlement and withheld $4 million by systematically downgrading the severity of emergency department visits - in effect, paying Sentara for a lower level of care than Anthem patients actually received.

"As a not-for-profit health system, every dollar we receive goes back into our mission, not to shareholders," said Aubrey L. Layne, Jr., Executive Vice President and Chief Administrative Officer for Sentara Health. "Our existing rates with Anthem already do not support what it takes to deliver care - and Anthem is asking us to accept even less. Furthermore, this is at a time when hospitals are facing significant financial impacts and decreased reimbursements from H.R.1. We cannot accept an arrangement that requires us to absorb significant losses for critical patient care so that a corporation which continues to report billions in annual profit can make even more. We remain ready to reach a fair agreement - and Anthem must come to the table prepared to do the same."

Anthem Blue Cross Blue Shield of Virginia is owned by Elevance Health, one of the largest and most profitable corporations in the United States. Even as Elevance reported $197.6 billion in total operating revenue and $5.7 billion in net profit in 2025 and continued returning capital to its shareholders through stock buybacks, it has declined to agree to reimbursement rates that support the delivery of care for Virginians. Anthem's position is not about affordability or long-term access to care for patients - it is about protecting margins for investors.

The consequences of that choice are far reaching. If Anthem continues to refuse a fair agreement, nearly 380,000 Anthem members in Virginia will lose in-network access to Sentara starting January 1, 2027 - facing higher out-of-pocket costs, disrupted care relationships, and fewer choices. Those with the least flexibility to absorb that disruption - seniors, people with disabilities, and lower-income families - would be hurt most.

Anthem members with questions can visit www.sentara.com/KeepSentara for more information.